The average age of first-time buyers (FTBs) in Ireland increased by 1.4 years between 2017 and 2023. In 2017, the average age of first-time homebuyers was 33.9 years. In 2023, the average homebuyer was 35.3 years old. During the same period, the age of second and subsequent borrowers experienced slightly less variation.

During the second quarter of 2024, Dublin’s city center had the highest median price of a newly built home across Ireland. The median price for a house in Dublin’s city center was 703,700 euros. Wicklow and Galway were some of the other counties with a high median house price, with residential properties costing 490,000 euros and 425,256 respectively. In contrast, the residential properties in Longford were the most affordable, costing around 170,000 euros. Though house prices in Ireland surged in the period after the coronavirus pandemic, the past year has shown signs of the market cooling down.

In the presented European countries, the homeownership rate extended from 42 percent in Switzerland to as much as 96 percent in Albania. Countries with more mature rental markets, such as France, Germany, the UK and Switzerland, tended to have a lower homeownership rate compared to the frontier countries, such as Lithuania or Slovakia. The share of house owners among the population of all 27 European countries has remained relatively stable over the past few years. Average cost of housing Countries with lower homeownership rates tend to have higher house prices. In 2023, the average transaction price for a house was notably higher in Western and Northern Europe than in Eastern and Southern Europe. In Austria - one of the most expensive European countries to buy a new dwelling in - the average price was three times higher than in Greece. Looking at house price growth, however, the most expensive markets recorded slower house price growth compared to the mid-priced markets. Housing supply With population numbers rising across Europe, the need for affordable housing continues. In 2023, European countries completed between one and six housing units per 1,000 citizens, with Ireland, Poland, and Denmark responsible heading the ranking. One of the major challenges for supplying the market with more affordable homes is the rising construction costs. In 2021 and 2022, housing construction costs escalated dramatically due to soaring inflation, which has had a significant effect on new supply.

House prices in Ireland have been on an upward trend since 2013, with a brief period of decline in 2019 and 2020. Although house price growth slowed down in 2022, the nominal prices continued to rise in 2023; however, when adjusted for inflation, the property price development turned negative in the final quarter of 2022. Reasons for this big decline are the rising inflation in Ireland, reduced money lending from the Irish Central Bank, as well as decreased affordability.

How expensive are homes in Ireland? The average list price of residential property in Ireland varied significantly between different counties. In the second quarter of 2023, Wicklow and Dublin were among the most expensive regions in the country, exceeding the national average of around 309,000 euros. Leitrim and Longford, on the other hand, offered the most affordable housing options, averaging below 200,000 euros.

Has income kept up with the development of house prices? The house price-to-income ratio measures the development of housing affordability and is calculated by dividing the nominal house price by the nominal disposable income per head. Between 2015 and 2023, the house price-to-income ratio in Ireland grew by nearly 17 index points, which means that house values increased in relation to earnings. This makes homeownership in Ireland more challenging due to the decreasing affordability of dwellings.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

In the second quarter of 2024, Dublin stood out with the highest average residential rent in Ireland. The average rent in the city center was 2,377 euros a month. Wicklow took the second spot with a rent of 2,042 euros per month. Other counties in the top five were Kildare, Meath, and Louth with an average rent range of 1,793 to 1,983 euros. In contrast, Leitrim emerged as the most budget-friendly county, with an average monthly rent of 1,139 euros. Additionally, Donegal, Monaghan,Sligo, and Mayo joined the ranks of the top five most affordable counties, boasting average rents ranging from 1,185 to 1,338 euros. Overall, residential real estate in most Irish counties measured a double-digit annual increase in rental costs in the second quarter of 2024.